Coal India Share Price Falls 4% As Government Announces OFS To Sell 2% Stake In PSU

On Wednesday, the Indian equity benchmarks traded marginally lower during the morning session, with the benchmark Nifty 50 index declining 0.08 per cent to 23,895.60. PSU and mining stocks remained under pressure following stake sale announcements and broader market weakness. In this segment, Coal India's share price declined over 4 per cent to Rs 439.70 after the Government of India announced an Offer For Sale (OFS) in the company.

Government Announces Coal India OFS

The Ministry of Coal, Government of India, acting as the promoter of Coal India Limited, announced an Offer For Sale (OFS) of equity shares through the stock exchange mechanism.

According to the filing dated May 26, 2026, the government proposes to sell up to 6,16,27,283 equity shares of Coal India Ltd, representing 1 per cent of the company’s total paid-up equity share capital.

The OFS will open for non-retail investors on May 27, 2026 (T Day), while retail investors and employees can participate on May 29, 2026 (T+1 Day). The filing also includes an option to additionally sell up to 6,16,27,283 equity shares under the green shoe option, taking the total potential stake sale size to 2 per cent of the company’s equity capital.

Coal India Floor Price Details

The floor price for the OFS has been fixed at Rs 417 per equity share. The company stated that retail investors and eligible employees bidding in the retail category may receive a discount on the floor price, details of which will be announced separately.

The OFS is being conducted through the separate designated window of BSE and NSE.

Coal India Objective Of The Stake Sale

The government’s stake sale is part of its broader disinvestment and capital market monetisation strategy. Following the transaction, the Government of India will continue to remain the majority shareholder in Coal India Ltd.

As of March 31, 2025, the Government of India held 63.13 per cent stake in Coal India Ltd.

Coal India Stock Performance

Coal India shares were trading at Rs 439.70 during Wednesday’s morning session, down around 4 per cent from the previous close of Rs 458.25.

The stock’s 52-week high and low stood at Rs 481.35 and Rs 370.05, respectively.

The stock has delivered returns of around 13.71 per cent over the past one year and around 89.91 per cent over the last three years.

Coal India Shareholding Pattern

As per the latest shareholding pattern, Foreign Institutional Investors (FIIs) increased stake in Coal India Ltd to 8.38 per cent from 8.22 per cent in the previous quarter.

Domestic Institutional Investors (DIIs) also increased stake to 22.76 per cent from 22.53 per cent during the same period.

About Coal India

Coal India Ltd is a Maharatna public sector enterprise under the Ministry of Coal and is India’s largest coal producer.

Headquartered in Kolkata, the company operates 310 mines across eight Indian states and contributes a major share of India’s domestic coal production.

What are your views on the Government’s Coal India OFS and the outlook for PSU mining stocks? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.